Visa chargeback reason code 12.1: Late Presentment, is a specific code used to indicate that the merchant did not submit the transaction within the required timeframe. Here are the details regarding this chargeback reason code:
Causes
The primary cause of reason code 12.1 is that the merchant failed to present the transaction to the card issuer within the time limits specified by Visa. Typically, this means the transaction was processed too late, which can be problematic for the cardholder and the issuing bank.
Resolution Time Frame
- For Consumers (Cardholders): Cardholders usually have 120 calendar days from the transaction processing date to dispute the charge.
- For Merchants: Merchants have 30 days to respond to the chargeback once it has been initiated.
Prevention and Mitigation
Preventive Measures
- Prompt Processing: Ensure all transactions are submitted to the acquiring bank promptly, typically within a few days of the transaction date. Delays should be minimized.
- Automated Systems: Use automated payment processing systems that immediately submit transactions to avoid delays.
- Regular Reconciliation: Regularly reconcile transactions to ensure that no sales are overlooked or delayed.
- Staff Training: Train staff on the importance of timely transaction processing and the correct procedures to follow.
Mitigation Strategies
- Detailed Documentation: Maintain detailed records of all transactions, including dates of sales, submission, and any relevant correspondence.
- Proof of Timely Submission: If a chargeback occurs, provide evidence that the transaction was submitted on time. This might include timestamped records from your payment processor.
- Communication with Issuer: If you receive a chargeback for late presentment, communicate with the issuing bank to understand their specific concerns and provide any supporting evidence you have.
- Review and Improve Processes: Analyze the root cause of the delay in submission and adjust your processes accordingly to prevent future occurrences.
